Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,000 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,090 | $298,553 | 0.7% | D |
| 2BR | $2,480 | $443,487 | 0.56% | F |
| 3BR | $3,250 | $674,727 | 0.48% | F |
| 4BR | $3,640 | $893,279 | 0.41% | F |
| 5BR | $4,222 | $1,200,441 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 80238 in Denver, CO, presents a dynamic housing market influenced by both rental and ownership trends. The Fair Market Rent (FMR) for the area stands at $2,770 for fiscal year 2024, indicating a significant benchmark for rental properties. In comparison, the Zillow Observed Rent Index (ZORI) shows a slightly lower market rent of $2,180. This suggests that while there's a notable gap between the government-set FMR and the actual market rent, the latter remains competitive and accessible.
The price-cut share of 0.2% implies that very few listings are being reduced in price, which can be interpreted as a strong seller's market where homes are generally selling close to their asking prices. Additionally, the Days on Market (DOM) figure of 9 days indicates swift sales activity, further supporting the notion of a robust demand for homeownership in the area.
The median home value in ZIP 80238 is $759,393, placing it within the upper echelon of Denver's residential real estate values. This high median value, combined with the low price-cut share and short DOM, suggests that demand for homeownership is currently outpacing supply. Landlords and small-portfolio investors should take note of these signs, as they indicate a potentially lucrative environment for those willing to invest in property.
A 28.9% renter share highlights a substantial portion of the population choosing to rent rather than buy. This statistic underscores the ongoing pressure on the rental market, which could persist due to the high cost of homeownership and the limited availability of affordable housing options. For landlords, this means that there is a consistent demand for rental units, but also a challenge to maintain competitive pricing without sacrificing profitability.
In summary, ZIP 80238 exhibits characteristics of a market where demand for both rentals and homeownership is strong. The relatively low price-cut share and quick sales times suggest that supply is tight, favoring sellers and potentially creating upward pressure on home values. Meanwhile, the high renter share points to an enduring need for rental properties, which can be a steady source of income for investors amidst a shifting housing landscape.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.